HomeMy WebLinkAbout06-02-75 7:30 Mtg.
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Hastings, Minnesota
June 2, 1975
Pursuant to due call and notice thereof, a regular meeting of the
City Council of the City of Hastings, Washington and Dakota Counties,
Minnesota, was duly held at the City Council Chambers in said City on the
2nd day of June, 1975, at 7:30 o'clock P.M. for the purpose of opening and
considering bids for and awarding the sale of $280,000 General Obligation
Improvement Bonds of 1975 of said City.
Members present: Councilmen Elliott, Erickson, Fischer, Hallberg,
Kramer, Latch, Novak Schnirring and Mayor
Petersen.
Members absent: None.
The Clerk presented affidavits showing publication of notice of
call for bids on $280,000 General Obligation Improvement Bonds of 1975 of
the City, for which bids were to be received at this meeting, in accordance
with the resolution adopted by the City Council on May 5, 1975. Said
affidavits were examined, found to comply with the provisions of ~linnesota
Statutes, Chapter 475, and were approved and ordered placed on file.
The Council proceeded to receive and open bids for the sale of
said bonds. The following bids were received:
NET INTEREST
BIDDER COUPONS PRICE COST & RATE
American Nat'l Bank & Trust 4.80% 1978 $276,920.00 $110,193.75
Company 5.00% 1979 (5.7996%)
St. Paul, Minn. 5.15% 1980
The First Nat'l. Bank 5.25% 1981
Has tings, Ivlinn. 5.40% 1982
5.60% 1983
5.75% 1984
5.90% 1985
6.00% 1986
6.10% 1987
Bancnorthwest 4.75% 1978 275,800.00 113,568.75
Cronin & Marcotte, Inc. 5.00% 1979 (5.977303%)
Both of Minneapolis, Minn. 5.20% 1980
5.40% 1981
5.60% 1982
5.75% 1983
5.90% 1984
6.00% 1985
6.10% 1986
6.25% 1987
E. J. Prescott & Company 5.25% 1978-80 275,000.00 115,073.75
Paine, Webber, Jackson & 5.40% 198] (6.0565%)
Curtis, Inc. 5.60% 1982
Both of Minneapolis, Minn. 5.75% 1983
5.90% 1984
6.00% 1985
6.10% 1986
6.25% 1987
The First National Bank of 4.90% 1978 275,240.00 115,107.50
Minneapolis, 5.10% 1979 (6.058%)
Minneapolis, Minn. 5.25% 1980
5.40% 1981
5.60% 1982
5.75% 1983
5.90% 1984
6.00% 1985
6.20% 1986
6.40% 1987
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BIDDER
The First National Bank of
Saint Paul
Saint Paul, Minn.
Dain, Kalman & Quail, Inc.
Minneapolis, Minn.
Piper, Jaffray & Hopwood, Inc.
Minneapolis, Minn.
COUPONS
4.90% 1978
5.00% 1979
5.25% 1980
5.40% 1981
5.60% 1982
5.80% 1983
6.00% 1984
6.25% 1985
6.40% 1986
6.55% 1987
5.50% 1978-80
5.60% 1981
5.80% 1982
6.00% 1983
6.10% 1984
6.25% 1985
6.40% 1986
6.50% 1987
5.40% 1978-80
5.50% 1980
5.75% 1981
5.90% 1982
6.00% 1983
6.25% 1984
6.40% 1985
6.50% 1986-87
NET INTEREST
PRICE COST & RATE
$275,800.00 $116,317.50
(6.121974%)
275,000.00 119,668.75
(6.2983%)
275,027.20
120,841.55
(6.3601%)
The Council then proceeded to consider such bids. After the bids
had been considered and discussed, Councilman Kramer introduced the
following resolution and moved its adoption:
RESOLUTION ACCEPTING BID ON SALE OF
$280,000 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1975 AND
PROVIDING FOR THEIR ISSUANCE
I\!:;'
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BE IT RESOLVED by the Council of the City of Hastings, Minnesota,
as follows:
1. That the bid of American National Bank & Trust Co. to purchase
$280,000 General Obligation Improvement- Bonds of 1975 of the City, in
accordance with the notice of bond sale, at the rates of interest herein-
after set forth, and to pay therefor the sum of $ 276,920.00 (plus a
premium of ----) is hereby found, determined and declared to be the most
favorable bid received, and is hereby accepted and said bonds are hereby
awarded to said bidder. The City Clerk is directed to retain the deposit
of said bidder and to forthwith return the good faith checks or drafts to
the unsuccessful bidders. Said bonds shall be payable as to principal and
interest at American National Bank & Trust Company or any successor Paying
Agent duly appointed by the City.
The $280,000 negotiable coupon general obligation bonds of the
City shall be dated July 1, 1975 and shall be issued forthwith. Said bonds
shall be 56 in number and numbered from 1 to 56, both inclusive, in the
denomination of $5,000 each. Said bonds shall mature serially, lowest
numbers first, without option of prepayment, on January 1 in the years and
amounts as follows:
$30,000
$25,000
in each of the years 1978 to 1983,
both inclusive; and
in each of the years 1984 to 1987,
both inclusive.
3. Said bonds shall provide funds for the construction of various
street and utility improvements in the City. The total cost of said im-
provements, including the cost of construction under the terms of the lowest
bid received, engineering, legal and other professional charges, publication
and printing costs, interest accruing on money borrowed for the improvements
before the collection of special assessments levied therefor, and all other
costs necessarily incurred and to be incurred from the inception to the com-
pletion of the improvements, is estimated to be at least equal to the amount
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of the bonds herein authorized. Work on the improvements shall proceed
with due diligence to completion.
4. The bonds of said issue maturing in the years and bearing the
serial numbers set forth below shall bear interest, payable January 1, 1976
and semiannually thereafter on July 1 and January 1 of each year, at the
respective rates per annum set opposite said maturity years and serial
numbers:
MA.1URITI YEARS
SERIAL NUMBERS
INTEREST RATE
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1-6
7-12
13-18
19-24
25-30
31-36
37-41
42-46
47-51
52-56
4.80%
5.00%
5.15%
5.25%
5.40%
5.60%
5.75%
5.90%
6.00%
6.10%
5. The bonds and interest coupons to be issued hereunder shall
be in substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
WASHINGTON AND DAKOTA COUNTIES
CITI OF HASTINGS
$5,000
No.
GENERAL OBLIGATION IMPROVEMENT
BOND OF 1975
KNOW ALL MEN BY THESE PRESENTS that the City of Hastings,
Washington and Dakota Counties, Minnesota, certifies that it is indebted
and for value received promises to pay to bearer without option of pre-
payment the principal sum of
FIVE THOUSAND DOLLARS
on the first day of January, 19 and to pay interest thereon from the
date hereof until the principal-rs-paid at the rate of %
( %) per annum, payable on the first day of January, 1976 and seml-
annually thereafter on the first day of July and the first day of January
in each year, interest to maturity being represented by and payable in
accordance with and upon presentation and surrender of the interest coupons
hereto attached, as the same severally become due. Both principal and
interest are payable at ,
or any successor Paying Agent duly appolnted by the Clty, in any coin or
currency of the United States of America which at the time of payment is
legal tender for public and private debts.
This bond is one of an issue in the total principal amount of
$280,000 all of like date and tenor, except as to serial number, maturity
and interest rate, which bond has been issued pursuant to and in full con-
formity with the Constitution and laws of the State of Minnesota for the
purpose of providing money for various street and utility improvements,
and is payable out of the General Obligation Improvement Bonds of 1975
Fund of the City. This bond constitutes a general obligation of the City,
and to provide moneys for the prompt and full payment of said principal
and interest when the same become due, the full faith and credit and tax-
ing powers of said City have been and are hereby irrevocably pledged.
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IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and
things required by the Constitution and laws of the State of Minnesota
to be done, to happen and to be performed, precedent to and in the issuance
of this bond, have been done, have happened and have been performed, in
regular and due form, time and manner as required by law, and this bond,
together with all other debts of the City outstanding on the date hereof
and the date of its actual issuance and delivery does not exceed any con-
stitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City ~HastI s, Washington and Dakota
COW1ties, Minnesota, by its City COW1C has c used this bond to be executed
in its behalf by the signatures of the or d the City Clerk, and a
facsimile of the corporate seal of said ty 0 be printed hereon, and has
caused the interest coupons to be execut d a authenticated by the facsi-
mile signatures of said officers, all as 0 uly 1, 1975.
(Fonn of c~on)
J,.~.~
CIty er
No.
$
/s/ Facsimile
City Clerk
City of Hastings,
earer at
sor Paying Agent
terest then due on
dated July 1, 1975.
On the first day of January (July), 19
Washington and Dakota COW1ties, Minnesota, wi! ay to
, or any succ
duly appoInted by the CIty, the sum shown hereon r i
its General Obligation Improvement Bond of 1975 N .
6. The bonds shall be executed on behalf of the City by the sig-
nature of its Mayor and the signature of its Clerk and be sealed with the
seal of the City; provided, that one of such signatures and the seal of
the City may be printed facsimiles. The interest coupons pertaining
thereto shall be executed by the printed, engraved or lithographed facsi-
mile signatures of the Mayor and Clerk.
7. The said bonds when so prepared and executed shall be deliv-
ered by the Treasurer to the purchaser thereof upon receipt of the purchase
price and the said purchaser shall not be obliged to see to the proper
application thereof.
8. There has heretofore been created a special fund designated
"Improvement Bonds Connnon Fund" to be held and administered by the City
Treasurer separate and apart from all other fW1ds of the City. Said fund
shall be continued and maintained W1til all of the bonds herein authorized
and the interest thereon have been fully paid. In said fW1d there shall be
created and maintained a new separate account, to be designated as the
"1975 Improvement Bonds Construction Account". The proceeds of the sale of
the bonds herein authorized, less any premium and accrued interest received
tllereon, and less any amoW1t paid for said bonds in excess of $275,000.00,
and less capitalized interest in the amount $25,000, shall be credited to
the 1975 Improvement Bonds Construction Account, from which there shall be
paid all costs and expenses of making said improvements, including the
costs of construction contracts heretofore let and all other costs incurred
and to be incurred and the moneys in said account shall be used for no
other purpose, provided that the bond proceeds may also be used to the ex-
tent necessary to pay interest on said bonds due prior to the anticipated
date of connnencement of the collection of special assessments herein
levied, and provided further that if upon completion of said improvements
there shall remain any unexpended balance in said 1975 Improvement Bonds
Construction Account, said balance may be transferred by the COW1cil to
the fW1d of any other improvement instituted pursuant to Chapter 429 M.S.A.
There is hereby pledged and there shall be credited to the Connnon Sinking
FW1d Account, all collections of special assessments herein covenanted to be
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levied, all accrued interest received upon delivery of said bonds, all funds
paid for the bonds in excess of $275,000.00, capitalized interest in the
amount of $25,000, and all funds remaining in said 1975 Improvement Bonds
Construction Account after completion of the improvements and payment of the
costs thereof, not so transferred to the fund of another improvement. The
Common Sinking Fund Account shall be used solely to pay principal and inter-
est on the bonds issued hereunder and any other general obligation bonds of
the City hereafter issued by the City and made payable from said account.
9. It is hereby determined that no less than $280,000 of the cost
of improvements shall be paid by special assessments to be levied against
every assessable lot, piece and parcel of land benefited by said improve-
ments. Said amount is not less than 20% of the cost of the improvements to
the City within the meaning of Minnesota Statutes, Section 475.58, Sub-
division 1(3). The City hereby covenants and agrees that it will do and
perform as soon as they may be done, all acts and things necessary for the
final and valid levy of such special assessments, and in the event that any
such assessment be at any time held invalid with respect to any lot, piece
or parcel of land due to any error, defect, or irregularity, in any action
or proceedings taken or to be taken by the City or this Councilor any of
the City officers or employees, either in the making of such assessments or
in the performance of any condition precedent thereto, the City and this
Council will forthwith do all such further acts and take all such further
proceedings as may be required by law to make such assessments a valid and
binding lien upon such property. Said assessments shall be payable in
equal, consecutive, annual installments, with general taxes for the years
shown below and with interest on the deferred balance of all such assess-
ments at the rate of 8% per annum:
IMPROVEMENf
DESIGNATION
AMOUNT
LEVY YFARS
6336 Street (MSA)
6337 Street Surfacing
6338 Street, Sewer & Water
$74,700
85,450
119,850
$280,000
1976-85
1976-85
1976-85
10. For the prompt and full payment of the principal of and
interest on said bonds, as the same respectively become due, the full faith,
credit and taxing powers of the City shall be and are hereby irrevocably
pledged.
11. The City Clerk is hereby directed to file a certified copy of
this resolution with each of the County Auditor's of Washington and Dakota
Counties, Minnesota, together with such other information as they shall
require, and to obtain from each of said Auditor's his certificate that
said bonds have been entered in the said Auditor's Bond Register.
12. The officers of the City are hereby authorized and directed to
prepare and furnish to the purchaser of said bonds, and to the attorneys
approving the legality of the issuance thereof, certified copies of all pro-
ceedings and records of the City relating to said bonds and to the financial
condition and affairs of the City, and such other affidavits, certificates
and information as are required to show the facts relating to the legality
and marketability of said bonds as the same appear from the books and records
under their custody and control or as otherqise known to them, and all such
certified copies, certificates and affidavits, including any heretofore
furnished, shall be deemed representatiDn5~of the City as to the facts recited
therein.
e motion for the adoption of the foregoing resolution was duly
y Councilman Fischer and upon vote being taken thereon, the
vote was recorded. Ayes, 8; Nayes, none.
said resolution was declared duly passed and adopted.
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